Implications of America’s 21st Century Inter-State Migration

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Implications of America’s 21st Century Inter-State Migration

According to the most recent Census Bureau data on state-to-state migration flows, 523,000 people moved to California from other states. But at the same time, more than 661,000 Californians moved to other states.

That means that, net-net, nearly 138,000 more people left California than moved into it from elsewhere in the U.S.  Yet, California isn't the worst in this regard. Both Illinois and New York lost even more residents to other states with net losses to other states totaling 144,000 and 167,000, respectively.

These numbers reinforce what has become a well-entrenched trend of U.S. residents moving from high-tax states to low tax states.

In fact, according to the Tax Foundation's most recent report on state and local taxation, among the top-ten states that the largest number of Americans have fled, seven of the ten are states which rank among the top 15 states for the worst tax burdens.  New York is ranked worst in the nation, while California is ranked at number four.

At the other end of the spectrum are states with far more modest tax burdens.  Florida, which tops the list with a net 118,000 new residents from other states, is ranked by the Tax Foundation as having the 31st highest tax burden.  Arizona, at number two, with 98,000 new residents from other states, is ranked at an even better number 34.  Texas is near dead last (in a good way) at number 47.  Even Washington State, which gained nearly 62,000 new residents from other states, is ranked in the middle at number 27.  (Oregon is an exception among the net-gainers, as it is ranked as having the 16th worst tax burden in the nation.)

Low-tax states also tend to be states that are, in general, more hospitable to the private sector, and to opening and running a business.  Indeed, "economic freedom," broadly speaking, can influence where potential employees and employers move as well.  Not surprisingly, in the Fraser Institute's most recent report on the "Economic Freedom of North America," California ranks as the 47th "most free" state, while Texas ranks as third.

Some of the states on the losing end have certainly noticed. Last November, the Sacramento Bee reported "More people left California in 2017 than moved here...

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